DOI https://doi.org/10.36719/3104-4727/1/47-51

Vusal Safarli

SV Consulting Group MMC

  https://orcid.org/0009-0008-6603-3581

v.seferli978@gmail.com

Tax Policy and Economic Development in Azerbaijan

Abstract

Tax policy plays a crucial role in shaping the economic development of a country by influencing investment decisions, business activity, and overall fiscal stability. In the case of Azerbaijan, tax reforms implemented over the past decades have significantly contributed to the diversification of the economy, reduction of the shadow economy, and improvement of the business environment. This study examines the relationship between tax policy and economic development in Azerbaijan, focusing on key reforms, tax incentives, and their impact on entrepreneurship and economic growth. The research highlights how a balanced and transparent tax system enhances state revenues while simultaneously encouraging private sector development. Furthermore, it analyzes current challenges such as tax compliance, administrative efficiency, and the need for continuous modernization in line with global standards. The findings suggest that effective tax policy not only supports macroeconomic stability but also fosters sustainable and inclusive economic growth in Azerbaijan.

Keywords: Tax policy, economic development, Azerbaijan, tax reforms, fiscal policy, economic growth, entrepreneurship, investment climate, public revenue, sustainable development